Understanding Whole Life Insurance

by Joseph Then

Let’s face it; not many of us know the different types of insurance policies. Let me begin this article by telling you that there are two types of insurance. They are whole and term.

Let’s focus on whole life insurance for a moment. Whole life insurance is life insurance that is bought on a permanent basis. Whole life insurance remains in effect until the pay out of the policy.

The policy will pay out upon the death of the insured or upon an event as specified in the policy.

Have you ever thought of the benefits? Well below are the benefits of a whole life insurance over term life insurance.


One thing that whole life insurance can offer is stability. Usually, whole life insurance policy gives out a guaranteed pay out and it carries a stable premium and guaranteed coverage.

Another important thing that whole life insurance can offer you is that there are no limits as to time and often the pay out can occur before death.

Cash Value

One of the greatest benefits of whole life insurance is that it has cash value. This means you can borrow against the money or even cash out early and get whatever you have paid into the policy.

With term life insurance there is no cash value, so this is a major benefit of whole life insurance over term life insurance.

However, you have to remember one thing; you do not necessarily need to pat back but if a loan is taken, and not paid back then the final pay out will be less the loan amount.

It Offers Flexibility

Another advantage of signing whole life insurance policies is that is flexible. I am sure you do not want to be stuck at a certain policy. Well, by having this policy, you can add onto the benefit amount and change things as the years go on and your needs change.

Additionally, because the policy carries cash value that you can cash out with at any time, you always have the option to take your policy elsewhere without losing the money you have paid into it.

Whole life insurance is not the best choice for everyone because the premiums are usually much higher. But for many people it is a wonderful option that helps them secure the future of their family should they pass away.

OK, I think you should have a clearer of what life insurance is. For those you don’t know, life insurance is something that anyone with dependents and people who rely upon them should look into purchasing.

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